Tuesday, August 5, 2008

No need for floating price for petrol

A country who is a net importer of oil will use the floating price mechanism to determine the price of petrol.In the US,the price of petrol changes constantly because most of the oil is imported and they have no choice but to use the floating price mechanism. As for Malaysia,we are a net exporter of oil and there is no need for us to use the floating price mechanism because of the following reasons :-

1) Malaysia is a net exporter of oil.

2008

2007

2006

(Bpd - Barrel Per Day)

BPD

BPD

BPD

Production

700,000

650,000

661,000

Consumption

645,000

620,000

598,000

-------

-------

-------

Excess for Export

55,000

30,000

63,000

-------

-------

-------

2) Our oil TAPIS is the most expensive oil in the world and it is the international benchmark for all types of oil.

As proven above,the price of petrol should decrease instead of being increase by an irresponsible and corrupt govt who will soon bankrupt Malaysia.
Malaysia is the only net exporter of oil to use the floating price mechanism .The price of our oil should be RM 1.62.